Why is my To Be Budgeted amount higher than bank balance?
I'm three months in to trying to get the hang of YNAB. I really like it but am trepidatious right now because my To Be Budgeted amount is higher than what it's in my back account. I checked what I've budgeted for in July and it's only $50 so far.
What am I missing? I've really loved how this software has helped me rethink spending and don't want to give it up. Trying very hard to understand it. I don't want to budget out the money in my To Be Budgeted amount if it's not really there.
ETA: I have one checking account. One cash on hand account (with $0 balance) and one account where I track transfers to my joint savings for upcoming tax payments. (That account only has six transfers in it and hasn't changed.)
Hi YNABing ! Since you've enabled Support Access, I went ahead and sent you an email with more detail. 😄
The amount in To be Budgeted includes your checking, savings and cash accounts. To be Budgeted is the sum of the four values to its right. Here's more on how that number is calculated!
Funds for [This Month] is the total of:
- the amount leftover in To be Budgeted from last month
- the amount Budgeted in Future from last month
- all Inflow:To Be Budgeted transactions in cash accounts* for the current month—including Reconciliation Balance Adjustments
- any Starting Balance transactions in cash accounts in the current month
- any positive credit card balances in the current month
- any cash advances from a credit account to a cash account in the current month
*Cash accounts are checking, savings, and cash accounts listed as Budget accounts (not credit cards and any Tracking accounts).
From that amount, YNAB subtracts the following three values:
Overspending in [Last Month] is the total of all cash overspending in the previous month. If a category has any cash overspending, the Available amount will be red. Select the category to see the specific amount of cash overspending in the right sidebar (as it could be a combination of cash and credit overspending).
Budgeted in [This Month] is the total of the Budgeted column in this month.
Budgeted in Future is the portion of this month's funds budgeted in future months.
If the taxes will be automatically pulled out of that secondary account, I would remove that account from the budget. Use a Tax category to budget for the monthly (?) transfers and consider that money "spent" at that point (from the standpoint of the budget).
A corollary of that location/purpose blog post is that if you ever find yourself trying to synchronize a category and an account balance, that's an indication that money should probably not be on budget.
Use a Tracking account if you must have the balance in YNAB (and are willing to keep it updated) or just leave it out of YNAB entirely for simplicity.
It took me awhile to dig into this but the suggestions on this thread, and ultimately the videos and hand-helping provided by Nicole at YNAB through email helped me figure it all out.
Theoretically I understood that I had to give every dollar a job, but when I transferred my tax payments to an account I called Tax Payments I thought the act of transferring those dollars was giving them a job. Their job was to sit there until I made quarterly tax payments (I'm a contractor.) mamster and Nicole from YNAB helped me see that I actually needed to assign them to a category, ie, create a category called Tax Payments and send them there.
Once I sorted that out, voilà, my accounts got back in order and I felt confident (indeed, I could clearly see that my Total Available matched what was in my checking account. )
I'm officially in my 4th month of using YNAB and feeling really empowered with learning how to truly budget my money.